Cyber solution of the year: Kovrr
Cyber risk presents a unique peril to insurers. Criminal activity and operational errors conspire with our increasingly digital economy to create a never-ending race where the frequency, severity and scope of the threats continues to grow.
In this highly fluid area, where the proliferation of ransomware attacks has been the most dominant development of the last two years, it is crucial for insurers to have an inclusive view of cyber risk.
Kovrr wins this year's cyber solution of the year by providing an end-to-end solution for underwriters.
Its platform continuously measures a company's security performance and identifies third-party service providers and technologies to financially quantify a company's exposure to cyber risk, as well as the potential accumulated loss in portfolios.
InsuranceERM's judging panel was impressed with a case study in which Kovrr explained how it provided one of the top five largest global insurance groups with a comprehensive and integrated view of cyber security risk.
Kovrr's co-founder and chief executive Yakir Golan tells InsuranceERM that insurers' approach to cyber risk is becoming more advanced.
Golan says ransomware claims in the last two years that contributed to many losses are indicators of insurers' inadequacies in pricing and coverage.
"This was evident in the hardening of market conditions and the fact that insurers were requesting more advanced requirements during the underwriting process. At the same time, their attention to the importance of managing portfolio risk increased," he says.
Increased attention from law enforcement has disrupted ransomware actors, forcing them to regroup more frequently. "Nevertheless, they will keep coming back," Golan says.